Another decision in Washington follows Canada's rapid removal of digital services tax
The United States says it will restart negotiations over trade with Canada on Monday. This decision comes after Ottawa removed the digital services tax (DST) which targeted US tech companies on Sunday.
President Trump had declared an end to negotiations on Friday, citing the DST as an "attack" on US interests.
“In our negotiations on a new economic and security relationship between Canada and the United States, Canada’s new government will always be guided by the overall contribution of any possible agreement to the best interests of Canadian workers and businesses," said Prime Minister Mark Carney in a statment announcing the end of the tax. "Today’s announcement will support a resumption of negotiations toward the July 21, 2025, timeline set out at this month’s G7 Leaders’ Summit in Kananaskis.”
The DST was set to take effect Monday, adding a three per cent surcharge to the revenue firms would take from digital services for Canadian users abover $20 million in a calendar year. Payments were set to be retroactive to 2022. The tax had been announced in 2020. The tax collection set for monday was halted and Finance Minister Francois-Philippe Champagne will propse legislation rescinding the DST.
“Thank you Canada for removing your Digital Services Tax which was intended to stifle American innovation and would have been a deal breaker for any trade deal with America,” U.S. Commerce Secretary Howard Lutnick said in a post on X (formerly Twitter).
